Monday, March 16, 2009

Information is Power


Just read this, in the awakening of the AIG debts. The U.S. government invested over US$ 150 billion on the company as a way of protecting the whole financial system. Press and citizens are crying out: why the company use part of this money to pay bonuses to its financial department? I am quoting the LA Times: "AIG names firms that got bailout cash" by By E. Scott Reckard and Tom Petruno, March 16, 2009.
"AIG did reduce some of its bonus payments last week
under pressure from Treasury Secretary
Timothy F. Geithner but said it was legally obligated
to pay $165 million to the financial products employees,
or else they not only could seek punitive damages
but might quit. That could cause even higher losses,
the insurer said, because these are the only employees
with the knowledge to "unwind" AIG's complex financial deals."

This is, yet, another example of the importance of process transparency.

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